Energy Independence Bill Takes First Steps
Hold on to your hats, a new solar wind is blowing thru Washington...
Washington, DC, USA: America Energy Independence Bill Takes First Steps
As the House prepared to roll back subsidies for fossil fuels via H.R. 6, Congressmen Michael McNulty (D-NY) and Dave Camp (R-MI) yesterday introduced legislation to reinvest those funds in America’s most abundant renewable resource – solar power. The Solar Energy Industries Association praised Reps. McNulty and Camp for sponsoring the “Securing America’s Energy Independence Act.”
The bill would extend solar energy investment tax credits for homeowners and businesses through 2015. The credits are currently set to expire next year. The Securing America’s Energy Independence Act includes the following provisions, to take effect for all equipment installed retroactive to January 1, 2007 and going forward:
Residential Solar Tax Credit: Extends a 30-percent tax credit, created in the Energy Policy Act of 2005, for the purchase of residential solar water heating, photovoltaic (PV) equipment, and fuel cell property. Changes the maximum credit to $1,500 for each half-kilowatt of capacity for solar PV equipment and $1,000 for each kilowatt of capacity for fuel cells. Credits may be taken against the alternative minimum tax. Expires after December 31, 2015.
Business Solar Tax Credit and Fuel Cell Tax Credit: Extends a 30-percent business credit, established in the Energy Policy Act of 2005, for the purchase of fuel cell power plants, solar energy property, and fiber-optic property used to illuminate the inside of a structure. Changes the maximum credit to $1,500 for each half-kilowatt of capacity for solar PV equipment. Credits may be taken against the alternative minimum tax. Expires after December 31, 2015.
Accelerated Depreciation: Creates a three-year accelerated depreciation period for all solar equipment eligible for the business solar tax credit.
“H.R. 6 sets the stage for new investments in renewable energy, and the Securing America’s Energy Independence Act represents a pro-growth path toward developing clean, domestic solar energy,” said Rhone Resch, SEIA president. “American taxpayers want to invest in technologies that create jobs, reduce emissions, lower our energy bills, and keep our energy dollars here in the United States. We commend Congressmen McNulty and Camp for proposing a bill that helps meet all of these goals with solar power.”
"I am proud to sponsor this bipartisan legislation with my colleague Rep. David Camp,” McNulty said. “At a time when the high cost of energy continues to be a serious economic concern for most Americans, it is crucial that we continue to invest in technologies like solar which exhibit enormous potential for helping the United States achieve energy independence. This investment will create thousands of high-paying jobs, strengthen our nation's energy security, and help American consumers save money on their energy bills."
"I look forward to working with SEIA and my colleagues in the House of Representatives in approving the Securing America's Energy Independence Act,” said Congressman Camp. “This bill will help further the goal of reducing America's dependence on fossil fuels and promoting greater consumer demand for affordable, clean, renewable energy. I am committed to policies that help the solar industry gain a greater foothold in the United States. I believe the Securing America's Energy Independence Act will help achieve this result."
The Energy Policy Act of 2005 provided a 30% tax credit for solar systems purchased for both residential and business applications. However, these credits will expire after two years without legislative remedy, a term too short to encourage significant industry growth. A long-term extension is essential to reducing the cost of solar energy, as it would create market conditions that allow solar companies to make investments and drive down costs through economies of scale. A longer duration will also be needed to help stimulate the development of large-scale concentrating solar power projects. SEIA estimated that a long-term credit extension would create approximately 55,000 solar industry jobs by 2015 and encourage states to invest billions of dollars in renewable energy infrastructure. Solar energy would displace four trillion cubic feet of natural gas under the bill, saving American consumers $32 billion over equipment lifetimes.
“The United States has the best solar resources in the industrialized world, and we should be a world leader in developing technologies that put these resources to work for all Americans,” said SEIA’s Resch. “This bill strengthens America’s economic future as well as our energy security. It will stimulate economic investment and create high-quality renewable industry jobs in every state across the U.S.”
Further details about: Solar Energy Industries Association
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Comments (3)
MANDATORY RENEWABLE ENERGY – THE ENERGY EVOLUTION –R9
In order to insure energy and economic independence as well as better economic growth without being blackmailed by foreign countries, our country, the United States of America’s Utilization of Energy sources must change.
"Energy drives our entire economy." We must protect it. "Let's face it, without energy the whole economy and economic society we have set up would come to a halt. So you want to have control over such an important resource that you need for your society and your economy." The American way of life is not negotiable.
Our continued dependence on fossil fuels could and will lead to catastrophic consequences.
The federal, state and local government should implement a mandatory renewable energy installation program for residential and commercial property on new construction and remodeling projects with the use of energy efficient material, mechanical systems, appliances, lighting, etc. The source of energy must by renewable energy such as Solar-Photovoltaic, Geothermal, Wind, Biofuels, etc. including utilizing water from lakes, rivers and oceans to circulate in cooling towers to produce air conditioning and the utilization of proper landscaping to reduce energy consumption.
The implementation of mandatory renewable energy could be done on a gradual scale over the next 10 years. At the end of the 10 year period all construction and energy use in the structures throughout the United States must be 100% powered by renewable energy. (This can be done by amending building code)
In addition, the governments must impose laws, rules and regulations whereby the utility companies must comply with a fair “NET METERING” (the buying of excess generation from the consumer), including the promotion of research and production of “renewable energy technology” with various long term incentives and grants. The various foundations in existence should be used to contribute to this cause.
A mandatory time table should also be established for the automobile industry to gradually produce an automobile powered by renewable energy. The American automobile industry is surely capable of accomplishing this task.
This is a way to expedite our energy independence and economic growth. (This will also create a substantial amount of new jobs). It will take maximum effort and a relentless pursuit of the private, commercial and industrial government sectors commitment to renewable energy – energy generation (wind, solar, hydro, biofuels, geothermal, energy storage (fuel cells, advance batteries), energy infrastructure (management, transmission) and energy efficiency (lighting, sensors, automation, conservation) (rainwater harvesting) (energy and natural resources conservation) in order to achieve our energy independence.
"To succeed, you have to believe in something with such a passion that it becomes a reality."
Jay Draiman, Energy Consultant
Northridge, CA. 91325
Jan. 21, 2007
P.S. I have a very deep belief in America's capabilities. Within the next 10 years we can accomplish our energy independence, if we as a nation truly set our goals to accomplish this.
I happen to believe that we can do it. In another crisis--the one in 1942--President Franklin D. Roosevelt said this country would build 60,000 [50,000] military aircraft. By 1943, production in that program had reached 125,000 aircraft annually. They did it then. We can do it now.
The American people resilience and determination to retain the way of life is unconquerable and we as a nation will succeed in this endeavor of Energy Independence.
Solar energy is the source of all energy on the earth (excepting volcanic geothermal). Wind, wave and fossil fuels all get their energy from the sun. Fossil fuels are only a battery which will eventually run out. The sooner we can exploit all forms of Solar energy (cost effectively or not against dubiously cheap FFs) the better off we will all be. If the battery runs out first, the survivors will all be living like in the 18th century again.
Every new home built should come with a solar package. A 1.5 kW per bedroom is a good rule of thumb. The formula 1.5 X's 5 hrs per day X's 30 days will produce about 225 kWh per bedroom monthly. This peak production period will offset 17 to 24 cents per kWh with a potential of $160 per month or about $60,000 over the 30-year mortgage period for a three-bedroom home. It is economically feasible at the current energy price and the interest portion of the loan is deductible. Why not?
Title 24 has been mandated forcing developers to build energy efficient homes. Their bull-headedness put them in that position and now they see that Title 24 works with little added cost. Solar should also be mandated and if the developer designs a home that solar is impossible to do then they should pay an equivalent mitigation fee allowing others to put solar on in place of their negligence.
Installing renewable energy system on your home or business increases the value of the property and provides a marketing advantage.
Nations of the world should unite and join together in a cohesive effort to develop and implement MANDATORY RENEWABLE ENERGY for the sake of humankind and future generations.
Comment #1 Posted by: Jay Draiman | January 21, 2007 02:41 AM
Wow Jay, well put, and I (obivously) couldn't agree with you more!
Comment #2 Posted by: Michael Lind | January 21, 2007 08:35 AM
Thank you Jay!
Comment #3 Posted by: Michael Didj | January 22, 2007 04:30 PM